Of course you know the market cap
Assuming there was Four Hundred Thousand Dollars worth of debt converted at ,0001 cents per share, there would be four billion shares outstanding.
Unfortunately for the debt holders that did not convert, until the Company increases its authorized shares to forty billion, they can not convert and will have to get paid in cash, or Stevie Dollars good for the purchase of Reids Soda or Runway Magazine.
At forty billion shares outstanding, the market cap of the company is $16,0000,000 or, approximately 5000 times its cash on hand.
Then there is another problem, not only will the Company be in default on the outstanding debt but also on Mr. Samblis' employment contract as, he is supposed to own 50% of the Company.
(I wonder if Asher and other financiers knew about this provision in the Contract before it was made public in the 2011 Form 10K).
Assuming 4,000,000 shares trade hands every day, it will take 1,000 days to sell four billion shares, or approximately two years and nine months.
Can hardly wait to see the Form 10K and how all of these issues will be discussed in the management section of Form 10K. More significantly, how many potential lenders are out there to provide more financing to the Company knowing that the above disclosures are in the Form 10Q.
Perhaps it can all work out. Steve receives an email from a long lost relative in Nigeria who, bails the Company out with a Million Dollar Gift. Steve then pays off all the debt eliminating the potential shares and he starts all over again with a more manageable 12,000,000 shares outstanding (the amount per the last 10Q footnote - see subsequent event note.
The market cap is then $4,800 and everyone is happy.
Always remember that meadow 2009 does not recommend you buy or sell any stock, drink your reids soda, read your Runway magazine and don't take any wooden nickels.
Cheers
